Topic 9 Risk Management Failures.pdf

Which of the following statements are examples of

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expand its operations in areas where risks are not being properly considered. Which of the following statements are examples of ignoring or not adequately using data? I. The firm assumes global market correlations stay constant during financial crises. II. The firm accepts the assumption that AAA-rated assets are very low risk. II only. I only. Neither I nor II. Both I and II. All of the following occurrences are examples of risk mismeasurement, except when risk managers:
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A) B) C) D) Question #4 of 7 Question ID: 438693 A) B) C) D) Question #5 of 7 Question ID: 438692 A) B) C) D) Question #6 of 7 Question ID: 438697 A) B) C) D) do not understand the relationships of the distributions among different positions. take known and unknown risks into account. do not understand the distribution of returns of a single risky position. use subjectivity when measuring extreme and rare events. It is important for a firm to recognize all relevant risks. Failing to manage risk exposure could result from all of the following actions except: not communicating risks to top management. not using appropriate risk metrics. not monitoring risk adequately. not measuring unknown risks correctly.
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  • Fall '18
  • risk management process

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